J.P. Morgan Asset Management launched two new actively managed fixed-income ETFs on the New York Stock Exchange on Friday.
The JPMorgan U.S. Aggregate Bond ETF (JAGG) and the JPMorgan Corporate Bond Research Enhanced ETF (JIGB) both aim to help investors improve returns and better manage risks within their fixed income portfolios.
“Historically, fixed-income ETF investors have had limited options beyond traditional indexing,” said Joanna Gallegos, U.S. head of ETFs at J.P. Morgan Asset Management. “With the launch of these two ETFs, investors now have more choice and the tools necessary to navigate the complexities of today’s bond markets, while building stronger portfolios.”
JAGG seeks to provide long term total return by employing a multi-factor screening process providing exposure to corporate debt issuers with attractive value, quality and momentum characteristics. Outside of corporate debt, the ETF will seek to align sector and duration exposures to the Bloomberg Barclays U.S. Aggregate Bond Index. JAGG has a total expense ratio of 7 bps (0.07%) after fee waivers and expenses.
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JIGB is designed to generate total return on an investment grade portfolio while utilizing inputs from J.P Morgan’s disciplined investment grade credit process to identity the most attractive risk-adjusted sectors and securities. The fund seeks to maintain the overall the risk profile of the Bloomberg Barclays U.S. Corporate Bond Index over time. JIGB has a total expense ratio of 14 bps (0.14%) after fee waivers and expenses.
Both funds harness the breadth of J.P. Morgan’s intellectual capital and vast investment resources. JAGG is managed by the Quantitative Beta Strategies Fixed Income team, led by Eric Isenberg and Niels Schuehle. JIGB is managed by the Investment Grade Credit Portfolio Management team, led by Lisa Coleman.
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